What I’m confused by is why Herman Cain, a Republican, wants to raise my taxes with his 9-9-9 plan?
While my marginal tax rate is higher than 18% (Cain’s proposed 9% sales tax + 9% personal income tax… yes, the math isn’t perfect but it’s close), my actual effective tax rate is about 15%. I’m certainly in the upper half of earners for San Diego county.
His proposal is a HUGE tax increase for most Americans. Plus, even with lower income taxes, who wants to pay 17% total sales tax on everything? Would that grind our retail economy to a complete halt?
I know a lot of people that claim that at least 50% of their income goes to taxes “when you add it all up.”
I’ve asked a few to explain how they arrive at these numbers. They typically start out with “30% goes to federal, 9% goes to state…”
We’re hearing a lot of interesting ideas these days:
– “Raise revenues by taxing the people that don’t have any money”
– “Fix the deficit by cutting 1% of the budget (NPR, etc.)”
Aren’t there estimates that as many as 50% do not pay any income tax? Over the years in order to get his tax cuts through Bush cut the low end, to where most get money back if they have a kid or two and make less than 30K.
I am not begrudging these folks their money, just saying everytime I did my sister’s taxes her Earned Income Credit was more than what she paid in. I wonder if the 9% ends up being even steven across the board, and thus more folks on the tax roll.
World of Class Warfare – The Poor’s Free Ride Is Over
The government could raise $700 billion by either taking half of everything earned by the bottom 50% or by raising the marginal tax rate on the top two percent.
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